In operating on a global scale, different industries employ different strategies in handling business. There are several key differences between industries operating on a global scale. Understanding the different strategies companies use in manufacturing, supplying, sales, distribution, and production plays a major role in the success of the given business. Within the global market, the success of a given company is determined by the success of the global operation strategy used.
Global industries have different responsibilities. Corporate social responsibility is the responsibility that global industries have to uphold global social concerns in their operations. Despite this, global businesses have a responsibility of attaining profitability despite the economic conditions they face in different countries (Fukuyama, F. 1995).
Global industries employ different strategies in conducting their operations. Strategies include global business strategies used by companies to create global business units. Global focus strategies on the other hand makes global companies focus on global business as geographic extensions (Kim, K., Park, J. H., & Prescott, J. E. 2003).
First-Class Online Research Paper Writing Service
- Your research paper is written by a PhD professor
- Your requirements and targets are always met
- You are able to control the progress of your writing assignment
- You get a chance to become an excellent student!
National economies have great impacts on operation of global business. Economic nationalism emphasizes the control of labor and capital information in a domestic perspective. Examples include Henr Clay’s American system an economic protectionism in which nations try to protect the national economies. This economic protectionism by the American government had a great impact on Toyota Company a global company as the US started protecting its home private car companies (Samiee, S. 1994).
Governments take different measures in influencing activities of business organizations. A government can create different policies in influencing business. Employment policy is an example of a measure governments use t influence business. Through employment policies, governments try to stimulate employment by creating jobs hence improving businesses. Regional policy promotes regional businesses by imposing higher taxes on products imported from outside the region. Governments use inflation policy to raise the prices of commodities by restraining products from the market for example the sugar inflation in Japan in 2009.
There are various factors to put in consideration before expanding a company to global scales. The first step is getting the company to a wide international commitment. Doing this entails making every employee a vital member of the international team by enhancing engineering, purchasing, and shipping.
Defining the business plan for accessing global market also plays a major role in international business is developing strategies for accessing global market. These include the company’s current status and the goalls for accessing international standards.
The third step the company should consider is how much funds it has to use for global expansion. Funding plays a big role and hence makes financial management and planning an important factor in accessing international market (Gereffi, G. 1999).
The forth step for the company t consider is planning at least a two year lead time required for penetrating the international market (Schiller, D. 2000). Internet marketing and other forms of marketing lays a big role in influencing international market penetration. Through building a website, the company increases penetration into international market.
The company should also carefully pick the desired product or service they intend to take to a global scale. Conducting a market research on the targeted market places also plays an important role in establishing the company to global scales. Through conducting a market research, the company determines the prime targets intended for the products intended for the global market (Fukuyama, F. 1995).
Preparing the products for export by considering international requirements in terms of packaging and setting competitive prices recognized on a global scale. The company should also consider either a direct or indirect export method for the products. By using direct methods, the company caters for packaging as well as exporting the products. In indirect exports, the company uses other companies to export and brand its product (Doz, Y. (1986).
Most popular orders